Thinking about the need for life insurance

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Reference no: EM131566094

Your best friend, John, who is a single parent is excited that you are taking this course as he has been thinking about the need for life insurance. Two years ago, John adopted a special needs child, who is 6 years old and enrolled in first grade in the local school district. Sam is mainstreamed but will need assistance all of his life. John makes $50,000 a year in the IT field at a local bank holding company, and wants to save for a home and retirement, and also make sure that he can provide funds to take care of Sam should he die prematurely. What Advice would you give John relative to the following products? 20 year renewable term insurance Life-paid-up-at-age 65 Ordinary Life Insurance Universal Life Insurance Touch upon the following areas Which of these policies would best meet the needs for protection of Sam should John suffer and early death and why? Which of these policies best meets the need of accumulating funds to take care of Sam should John die at a normal age? Which of these policies best meets the need of accumulating funds for a down payment on a house? Should an insurance policy be used for that purpose? What if any obstacles are there if John wants to use cash value life insurance to meet all of his financial needs? Does a single parent face more challenging risks than a traditional family when considering the risk of premature death? Can life insurance fill a larger role in the risk management plans of a single parent?

Reference no: EM131566094

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